Introduction to

Management
Gergő Sándorfi
Department of Management
and Business Economics
[email protected]
e.hu

Management
course
material-
Chapter 1.-
page 5.-12.
 Materials
• http://edu.gtk.bme.hu
• MANAGEMENT AND BUSINESS ECO
NOMICS - BMEGT20A001
• SlideShows (Management)
• PADA

• [email protected]

2
Why to learn
management?

• Career path to choose

 Why to learn management?
Engineer – till death (?)

Tipical career

IT developer Senior IT developer Manager

4
Quantitative  qualitative
way of thinking

2+2=4 in math
2+2=? in
management
Quantitative  qualitative
way of thinking
It is a profession,
but I cannot
always tell you the
ultimate truth.
Nothing is more dangerous than an idea
when it is the only one you have.

Emil Chartier

7
The whole problem with the world is
that fools and fanatics are always so
certain of themselves,
and wiser people so full of doubts.

Bertrand Russell

8
If you see a debate, try to understand
both sides!

XYZ

9
If you wish to converse with me, define
your terms!

Voltaire

Voltaire

10
What comes to our mind first when we think
of the manager himself/herself as a key player
in a company or other organization, and what
tasks do we associate with this person?
 Why should we become
managers?

• Can do much more for the

community
• Don’t have to compete with the
younger generation
• Earn more money
• The job is more interesting and
richer
• See the whole picture
• Dealing with people
• …?
It is all about communication!

COMMUNICATIO
N
 The purpose of learning
management
• To know what a company is based
on
• To know what a manager really is
• To be able to identify the main
characteristics of the company you
work at
• To acquire management skills to
see the whole picture about the
functioning of the company
• Professional vs managerial carrier
14
 What are we going to talk
about today?
❑Where do managers work?
❑The definition of management
❑Management Functions
❑Managerial levels
❑Managerial roles

15
What do we call an
Organisation?

the
bigger
the
better

1
 What do we call an
Organisation?
Societal formation based on common activity of a
specific group of individuals.
A system that is determined by human actions.

the
Basic characteristics: bigger
the
- has specific purpose, distinct
better goals
- creates deliberate structure for either a
limited or a long term existence
- targets efficient functioning by choosing the
right employees, technologies, etc

1
Resources

the
bigger
the
better

1
 Definition of
Management
Management is about
– planning,
– organizing,
– controlling, and the
bigger
– leading the
better
– the financial-, physical-, informational-,
and human resources

– in an effective and efficient way.

1
 Efficiency and
Effectiveness
Efficiency measures the economy in achieving of
our production results. In this case an organization
Effectiveness focuses on our goals. It measures
whether we truly achieve our planned objectives,
is efficient when it generates the most amount of fitting to our purposes. This means that an
output from the least input. This means that we organization is effective if it has actually
have an efficient company when we perform achieved the result, that have been predefined
our production from as few resources as for it by analysis of the market and the information
possible inside.
Fundamental questions of
management

How to increase the How to motivate the

organizational members of the
performance, organization to
effectiveness and increase their
efficiency? performance?
Management
Functions

the
bigger
the
better

2
Management
Functions
Management
Functions
Goal vs objective

Goal: we want to go to the Moon / Mars / etc

Objective: we want to go to the Mars by the end of

2035, with the cost of 100 billion dollars
But! Is every manager
similar in a company?
Managerial levels
 responsible for making
manage the work of nonmanagerial
organization-wide decisions and manage the work of first-line
employees who typically are
ablishing the plans and managers, they are mainly
involved with producing the
goals that affect the entire responsible for turning company
organization’s products
organization strategy into
or services (eg. shift managers,
(eg. executive vice president, action (eg. regional manager,
district managers, department
president, managing director, chief project leader, store manager, or
managers, or
operating officer, or division manager)
office managers)
chief executive officer)
 Managers-Management Skills
What types of skills do managers need?

Other important managerial skills that have

been identified are listed

31
Managers
Line manager vs
Project manager

Line Manager manages the work engaged by a set of projects. A Project

Manager is the manager assigned to manage a single project. A Project
32
manager may or may not be the line manager.
Line Manager’s tasks and responsibilities
By activities:
Team-
work

Up and
HR (People
management) down
Communi-
cation

Representation
of company
Profession Industry

Strategy and Working Project

Planning environment Finance management

33
Project Manager’s tasks

Source: https://onlinepmcourses.com/understand-role-of-the-project-manager/

34
 The difference
between the manager
and the leader
If someone is called formally A manager though, plans,
a leader, then we emphasize organises and also controls
that the individual has besides leading,
possessing formal power tools in
followers, over whom he/she
the organisation, and legitimate to
exercises power. A leader can influence the activity of others. So
be informal as well, who can if someone is called a manager,
influence the activity and we highlight the whole of his/her
behaviour of others based on activity, not just that part he/she
informal powers, like uses to influence others
expertise or prestige.
Managers- Managerial
Roles
Managerial roles that involve people and
other duties that are ceremonial and
symbolic in nature

Managerial roles that involve collecting,

receiving, and disseminating information

Managerial roles that revolve around

making choices
Managers- Managerial
Roles
What do they do?

Henry Mintzberg

The term managerial roles refers to specific actions or

behaviors expected of and exhibited by a manager
 Managerial Grid
(Blake & Mouton)

Plots management styles

on a 2D grid

-> gives great framework

to diagnose a manager’s
style

-> the manager’s

movement towards the
ideal style can be tracked

Focus on 5 core styles

 Managerial Grid
(Blake & Mouton)
Concern for
people

Concern for production

 Ability to
Pleasant compromis
workplace e, avoiding
ambient Teamwork,
conflicts, participatio
(attitude temperanc n of
of e employees
employees
) Concern for people

Minimal Giving
connectivity orders
with Concern for production (employee
employees as a tool)
Being a manager nowadays
Focus areas in 2020s:

Customer

Employee Technology

FOCUS
FOCUS

Sustainability Social media

Innovation

41
Being a manager nowadays...

1. Focus on the customer

”Let the marketers* worry about the customers?”

*Marketing department: product, price, place, promotion,

Manager’s goal:
Produce high-quality in-store experience:
❖ product placement,
❖ promotional strategy,
❖ training of employees (behavior)
❖ high-quality customer service
❖ best in class CRM system

John Legere, former CEO of T-Mobile competitive environment

42
Being a manager nowadays...

2. Focus on Technology & Digital transformation

Technology has been changing how things get done:
❖ cloud computing
❖ social media,
❖ robotics
Managers must work with employees to understand
why new technology is an improvement over present
ways of conducting business.
Is it a myth that social skills have become less
important because there is more technology
!BUT!
in the workplace?

Take robotic technology. Software programming can systemize

human decision making and physical tasks, which can be carried out by
machinery.
However, technological advances have fallen short of replicating human
interactions and of substituting human judgment. Particularly in team
settings, workers rely on each other’s expertise, and they are able to adapt
to changing circumstances than is made possible by software.
43
Being a manager nowadays...
3. Focus on Social Media as new frontier

online
information
ideas communities communication

personal
event
messages
organization pictures
promotion

employee activist: Encouraged by the company employee

activists draw visibility to their workplace, defend their
employers from criticism, and serve as advocates, both
online and off.
44
Being a manager nowadays...

4. Focus on Innovation

Success in business today demands innovation.

Innovation means exploring new territory,

taking risks, and doing things differently.

It isn’t just for high-tech or other

technologically sophisticated organizations!
Innovative efforts can be found in all types of
organizations which increase efficiency.

Innovation management

45
Being a manager nowadays...

5. Focus on Sustainability

Sustainability: a company’s ability to achieve its business goals and

increase long-term shareholder value by integrating economic,
environmental, and social opportunities into its business strategies.

Microsoft invests in a variety of sustainability

projects.
Management funds these projects through taxes
levied on its business units’ energy consumption
that contributes to environmentally unfriendly
carbon emissions. The responsibility for savings
falls on division managers.

In a recent three-year period, the company has

reduced its emissions by 7.5 metric tons of carbon
dioxide = equivalent of removing more than 1.5
million cars from the road for a year.

This corporate action affirms that sustainability and

green management have become mainstream
issues for managers. 46
What is sustainability?

Fulfilling the needs of current generations without

compromising the needs of future generations

Environmental sustainability focuses on the

conservation of biodiversity without foregoing economic
and social progress.

Economic sustainability refers to the organisation's ability

to manage its resources and responsibly generate
profits in the long term.

Social sustainability in particular has the goal

of strengthening the cohesion and stability of specific
social groups (by gender, by age, etc.)

Source: https://www.becas-santander.com/en/blog/what-is-sustainability.html
47
Being a manager nowadays...

6. Focus on the Employee

Build talent from within organizations rather than recruiting talent from the
external labor force !
Well-treated employees are more likely to go the extra mile when performing their jobs.

It is important to develop a culture that helps ensure employees feel

trusted to do a good job, take pride in their work, and feel that their 48
contributions are truly valued.
Additional new challenges for managers

49
Case Study

„Who Needs a Boss?”....

https://www.youtube.com/watch?v=0FmKsDf_CnI
Re-structuring in every 5-7 years

- Companies are being restructured in every 5-7 years

- To shake up the employees, shake up the system,
get to know new colleauges, create new
departments, answer to new challenges
 Employees OR group of people who are willing
to take the responsibility for themselves?

Freelancers

erybody has a boss, it’s called: TIME

 THANK YOU FOR YOUR
ATTENTION!
sandorfi.gergo.almos@gtk
.bme.hu